Not so long ago, institutional real estate investors rarely strayed from a basic diet of domestic core office, retail, industrial and multifamily. But their appetites and tastes have expanded dramatically in recent years. Today’s investors have broadened their horizons to include many new strategies across equity and debt, public and private. They’re participating in joint ventures and funds of funds, going global in a big way, investing in niche strategies and infrastructure, and exploring newer instruments such as real estate derivatives.
From the Current Issue
In the three decades since 401(k)s were legislated into existence, a growing share of U.S. workers have depended on defined contribution plans to supply their retirement income. By 2005, there were approximately 62 million active participants in DC plans versus 33 million in private and public defined benefit pension plans.
Following the drama of the U.S. real estate securities market in June, portfolio managers found relief in a long Fourth of July holiday weekend — when fireworks would be safely contained in the night sky. Equity REITs fell 11.4 percent in June, according to the FTSE NAREIT U.S. Real Estate Index Series.
We are one year into the credit crunch. Housing prices across the United States and in many other markets are falling, and everyone from chief economists to the general population is debating if the economy is in a recession yet. For investors it all adds up to a lot of uncertainty.
Following its latest survey of institutional investors, the National Multi Housing Council (NMHC) announced the apartment market, for the time being at least, continues to show signs of steady fundamentals despite the currently weak economy and tightening financial markets. Rachel Speirs, assistant editor of The Institutional Real Estate Letter, spoke with Mark Obrinsky, NMHC’s chief economist and one of the report’s co-authors, about the report’s findings and the current state of the multifamily housing sector.